Equitas Holdings Q1 Review – Business Growth Muted; Healthy Recovery In Collection Efficiency: Motilal Oswal

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Equitas Small Finance Bank reported a profit after tax of Rs 119 million (our estimate: Rs 705 million) impacted by higher opex and elevated provisions on account of restructuring.

Equitas’ business growth remains muted, with non-micro finance institution assets under management flat QoQ, while the MFI portfolio declined.

Liability momentum continues to stay strong, with current account and savings account ratio improving to 40%.

On the asset quality front, slippages stood elevated as collections were impacted due to the second Covid-19 wave.

However, higher upgrades provided some support.

Gross non performing asset/net non performing asset increased by 103 basis point/80 bp QoQ, while the restructuring book stood elevated at Rs 13.3 billion (~7.5% of loans).

Click on the attachment to read the full report:

Motilal Oswal Equitas Holdings Q1FY22 Result Update.pdf


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